Mid-Con Energy Partners LP Units (MCEP)

[Congo Mining]

August 4th Q2 CC call excerpt

"John Ragozzino - RBC Capital Markets
Okay, that’s helpful. And then I guess a bigger picture, what I know is probably a difficult question to answer at this point again, but if you look at the forward curve over the past several months, you have seen a pretty significant change in the shape of the curve, not just as well as the front month price decline. When you consider the shape of the five-year curve outwards and in terms of the minds of your creditors, there is a real serious concern out there that we are going to have another around of small redeterminations to the downside. Can you just talk about the preliminary thoughts around that discussion and any negative leverage that you might have to pull in addition to the continued operational performance and cost savings that would get you to excess cash flow and paying down debt. But if you weren’t sustained, call it 15% to 20% reduction in your borrowing base, what would be the strategy there?

Mike Peterson - CFO
Sure, if it was 15% to 20%, I think you can go through the numbers and see that the excess cash flow from later this year would let us easily get down underneath that number, $200 million now, excess cash flow I think gets us another $10 million or $15 million between now and end of the year. So we could – if it was 15% or 20% reduction, we can get down there. We have talked about reserves and we don’t talk about reserves mid-year, but obviously with production exceeding, what our expectations were at the beginning of the year, that will affect reserves positively, which will help offset some of the downward revisions, some of the mixed price decks. It’s one of our concerns as it probably is for all of our peers, we have been talking to our banks in the interim to get an idea where we are going and we feel we are in a position to be fine, regardless of what happens in the next formation [ph] review.

Mike Peterson - CFO
John, you might also have a look at some of the options that our peers have employed. They, in cases, had greater negative redeterminations that we've experienced. In most cases, their leverage is higher and they've been very effective at addressing those issues. We would expect, if circumstances unfolded in the scenario we're talking about, to have the same tools available to us."

http://seekingalpha.com/article/3395105-mid-con-energy-partners-mcep-ceo-jeff-olmstead-on-q2-2015-results-earnings-call-transcript?part=single